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Comparison of Russian gas
prices is complicated by the variety of gas standards in the reports and contracts of
Gazprom. From the standpoint of heat content, a cubic meter of
Ukrainian contract differs from the one of Gazprom report making the
prices per thousand cubic meters (mcm) incomparable. To compare the prices, one
needs to apply correct conversion factors.
For example, the
prices of the Ukrainian contract of Gazprom are converted as
follows.
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$268.5/mcm |
= $8.4/MMBtu |
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$378/mcm |
= $11.8/MMBtu |
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$485/mcm |
= $15.2/MMBtu |
For the sake of
comparison,
IMF estimated the price of Russian gas at the border of Germany
at $10.40/MMBtu (in September 2014). Gazprom reported the
weighted average price of gas exported out
of the former Soviet Union in H1-2014 at $11.4/MMBtu.
Mikhail Korchemkin
East European Gas
Analysis
Malvern, PA, USA
October
31, 2014
Reproduction or use of
materials is allowed only with reference to East European Gas
Analysis or www.eegas.com
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